How to Lower Your Medicare Premiums

The standard 2026 Part B premium is around $185/month — over $2,200 per year. But many seniors pay more due to IRMAA income surcharges, and many others qualify for programs that reduce or eliminate that cost entirely. Here are the four most effective strategies.

Strategy 1: Apply for a Medicare Savings Program (MSP)

MSP is the most powerful premium reduction available. Depending on your income and household size, it can cover your entire Part B premium — the equivalent of $185+/month, or $2,200+ per year.

There are four MSP tiers:

• QMB (Qualified Medicare Beneficiary) — Covers Part A and B premiums, deductibles, and copays
• SLMB (Specified Low-Income Medicare Beneficiary) — Covers Part B premium
• QI (Qualifying Individual) — Covers Part B premium (first-come, first-served enrollment)
• QDWI (Qualified Disabled Working Individual) — For certain disabled workers

Many seniors who qualify never apply because they assume they earn too much. Income limits are higher than most people expect — especially when medical expenses are factored in.

Strategy 2: Review and Switch Plans Annually

Medicare Advantage plans change their premiums, networks, and drug formularies every year. Many seniors stay on the same plan by default and miss out on lower-cost options that cover the same doctors and medications.

Use the Annual Enrollment Period (October 15 – December 7) to compare plans at Medicare.gov. Even saving $50/month adds up to $600 annually.

Strategy 3: Check for State-Based Help

Beyond federal MSP programs, many states offer additional premium assistance, Medigap subsidies, and prescription drug programs for seniors. These vary widely — some states are much more generous than others.

Strategy 4: Appeal an IRMAA Surcharge After Income Changes

If you're paying IRMAA surcharges because your income was high two years ago — but it's dropped significantly since then (due to retirement, spouse passing, or other life event) — you can appeal and request a recalculation using your current income. Many seniors are paying surcharges they no longer qualify for.